President Bola Tinubu has disclosed that the 2025 budget is hinged on restoring macroeconomic stability; enhancing the business environment; fostering inclusive growth, employment, and poverty reduction, and promoting equitable income distribution and human capital development.
TheNewsGuru.com (TNG) reports President Tinubu, who made the disclosure while presenting the 2025 budget proposal to a joint session of the National Assembly (NASS) on Wednesday in Abuja, said the 2025 budget is anchored on a benchmark oil price of $75 per barrel and an ambitious production target of 2.06 million barrels per day.
The proposed 2025 budget, christened restoration budget, securing peace and building prosperity, totals N47.9 trillion, marking a 36.8% increase from the budget of 2024, with a projected deficit of N13 trillion or 3.89% of GDP.
“The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socioeconomic fabric of our society.
“In 2025, we are targeting 34.82 trillion naira in revenue to fund the budget. Government expenditure in the same year is projected to be 47.90 trillion naira, including 15.81 trillion naira for debt servicing.
“A total of 13.08 trillion naira, or 3.89 percent of GDP. will make up the budget deficit. This is an ambitious but necessary budget to secure our future,” President Tinubu said.
TNG reports the 2025 budget projects inflation will decline from the current rate of 34.6 percent to 15 percent next year, while the exchange rate is envisaged to improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day (mbpd).
The projections, according to the President, are based on reduced importation of petroleum products alongside increased export of finished petroleum products; bumper harvests, driven by enhanced security, reducing reliance on food imports; increased foreign exchange inflows through Foreign Portfolio Investments, and higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.
President revealed key highlights of the 2025 budget allocations to include N4.91 trillion for defence and security, N4.06 trillion for infrastructure, N2.48 trillion for health and N3.52 trillion for education.
“As we embark on implementing the 2025 budget, our steps are deliberate, our decisions resolute, and our priorities are clear. This budget reflects a renewed commitment to strengthening the foundation of a robust economy, while addressing critical sectors essential for the growth and development we envision,” Tinubu said.